Further weakness could drag GBP/USD to the 1.2000 zone in the next few weeks, note UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strateg
to the 1.2000 zone in the next few weeks, note UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.24-hour view: After GBP rose to a high of 1.2271 last Friday, we indicated yesterday that “the short-lived advance did not lead to any buildup in momentum, and GBP is unlikely to advance further.” We expected GBP to consolidate in a range of 1.2145/1.2255. Instead of consolidating, GBP plunged to a low of 1.2086.
Next 1-3 weeks: Our most recent narrative was from last Friday , wherein the recent month-long weakness has ended, and GBP could consolidate in a range of 1.2100/1.2380 for the time being. We did not expect GBP to drop below 1.2100 so quickly, as it plummeted to a low of 1.2086 in NY trade. The rapid decline suggests that the weakness in GBP has resumed, likely towards 1.2000. In order to maintain the momentum buildup, GBP must not move above 1.2190, the current of ‘strong resistance’ level.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.EUR/USD is sitting at YTD lows near 1.0450 in the European morning on Tuesday. Hawkish Fed expectations and risk-aversion are supporting the US Dollar uptrend, weighing on the pair. US JOLTS Job Openings data is next in focus amid a light EU economic calendar. GBP/USD remains on the defensive near a multi-month trough touched this Tuesday.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GBP/USD struggles to gain any meaningful traction, remains confined in a narrow bandThe GBP/USD pair finds some support near the 100-hour Simple Moving Average (SMA) during the Asian session on Monday, albeit struggles to attract any
Read more »
Pound Sterling Price News and Forecast: GBP/USD remains under selling pressure near 1.2180The GBP/USD pair remains on the defensive below the 1.2200 barrier and trades in negative territory for the fifth consecutive week during the early Eu
Read more »
GBP/USD now faces some consolidationIn the view of Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group, GBP/USD could now trade between 1.2100 and 1.2380 i
Read more »
GBP/USD: A retest of the 1.20/1.21 area looks likelyGBP/USD slips back after late week rebound stalls. Economists at Scotiabank analyze the pair's outlook. Bearish momentum is strong The GBP recovery on
Read more »
GBP/USD: 1.20 test inevitable?The Pound moves lower after the meek attempt to turn the tide last Thursday and Friday into month-end. Economists at Société Générale analyze GBP/USD
Read more »
British Pound Technical Outlook: GBP/USD, GBP/JPY May Fall as Sterling Remains PressuredFrom a technical perspective, the British Pound is appearing increasingly vulnerable to the US Dollar and Japanese Yen. Will GBP/USD and GBP/JPY continue lower from here?
Read more »